How to weather a coronavirus cash crunch if you have no emergency fund

Yahoo News

As the coronavirus hammers airlines, hotels, and other industries and forces school closures and other shutdowns across the country, Americans may find they must miss work without getting paid.

Typically, turning to emergency savings — three to six months of expenses is recommended — is the best way to get through those periods, according to experts, but a significant number of Americans lack those funds. 

Only two in five U.S. adults have enough emergency savings to pay an unexpected $1,000 expense, according to a 2019 survey from Bankrate. Otherwise, they would need to borrow money in some way.

“The situation that involved last year’s federal employee furlough was a wake-up call,” said Bruce McClary, the spokesman for the National Foundation for Credit Counseling. “People were not prepared enough with cash savings to be able to sustain themselves for more than a week or two.”

For those without enough savings, McClary offers these options to deal with reduction in cash flow.

File your taxes

Tax refunds can help cover expenses during periods of unpaid leave from work. So far, 52.7 million Americans already received their refund, or less than half than the number of taxpayers who received one last year.

This year, the average refund is $3,012, but taxpayers must first file their tax returns to get their refunds.

“Getting the most out of your money means avoiding costly rapid refund loans,” McClary said. “It’s best to get the refund from the IRS through direct deposit.”

Skip a big payment

Another way to relieve a cash crunch is asking your mortgage lender or auto lender if they have a program where you can make an interest-only payment and then skip a month on your payment.

Consumers who have been paying their loans on time and are in good standing may get this option for one month.

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2 thoughts on “How to weather a coronavirus cash crunch if you have no emergency fund

  1. Soooooo
    , how are the protests in Hong Kong going?

    oh thats right , im not supposed to ask that

  2. I have none of that, and I don’t piss with their tax fraud.
    I’m getting by fine.
    Lifestyle Change!
    Living “their” garbage game achieves benefits for “them”.
    Think of this:
    When the big upheaval happens, and the garbage is tossed, most folks are more than likely want to migrate back to the ways they are used to. And what good could possibly come from that?!

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